Betfair Secures Licensing in Germany

The northern German state of Schleswig Holsteinhas given its first three gaming licenses to online casino games companies.The British provider, Betfair, has acquired one of the three licenses, with the other two awarded to Germany's Jaxx AG and the state lottery.

Schleswig Holstein recently relaxed their online casino games legislation, while the other fifteen German states have gone in the opposite direction. They have chosenmore limited casino games online laws and have received criticism from top rated online casinos that accuse them of backing state monopolies. The European Commission has also weighed in on the issue.

Schleswig Holstein’s laws require a twenty percent tax on gross profits rather than favoring a more punitive tax on turnover. Taxes will amount to approximatelythree million pounds, or about three percent of real Betfairprofits.

An analyst commented, "We view this as a significant positive for the company, given that it further erodes the bear case on the stock that Betfair would be unable to get licensed outside of the UK.”

Schleswig Holstein's interior ministry weighed in and stated that it anticipates awardinglicenses for poker and other casino-style games in the coming weeks. Betfair has applied for these licenses as well, in addition to what they have already secured.

As a result of Betfair’s license acquisition, shares in Bwin.party, the parent company, rose three percent.